Budgeting

How Australians Save Money, What Kind of Saver are You?

Don’t be a disinterested saver

Many Australians have savings, but do not understand what they are saving for. When your savings plan is not prioritised, it falls into the category of being unimportant, that is not good. How Australians save money depends on their level of financial savvy and interest. When outlining a savings plan, be proactive and engaged. Learn about how to save why to save and the ways to keep your savings healthy. Your savings are an important part of your overall financial outlook.

Saving money, an interactive behaviour

How do you save money? Do you have a dream with no knowledge of how to make it reality? 43% of Australians have savings, with no idea what they will use it for, or why. If you don’t prioritise your savings, they won’t grow at a healthy rate. Saving money requires involvement in the process, some tips on how to do that:

1) Get with the plan

If you have a goal you are saving money toward, make a plan! Without a savings plan, you won’t achieve your savings goals, and that can sink the entire project. If you are interested in purchasing a home, car or a washer and dryer start now by outlining a financial plan that works within your budget and your income level.

Know how much money is needed. If you don’t, you will always be unsure about the target amount, and that is not conducive to saving. By keeping your amounts crystal clear, you help yourself to achieve that goal.

Pay off any outstanding late or high percentage bills before you start saving. Nothing will undermine a good savings plan faster than late penalties and excessive percentage rates on a credit card. Look into reasonable short term loans in order to set your financial house in order.

Have a definite time frame. Don’t stretch out a savings plan indefinitely, you need a start/stop time-line. It makes it easier to save money when you have a finite amount of time to do it.

2) Prioritise and evaluate all your spending

Saving money requires that you analyse your budget on a regular basis. Being aware of your spending and income is a great step toward financial responsibility and success.

Keep track of your savings progress. Knowing where you are at in the evolution of your savings plan helps to achieve your savings goal. If you are falling behind in projected savings, you can step up the contributions. If you are on track and doing well with savings goals, you can relax a little, and feel great about the money you are putting away.

3) How you save money is as important as why you save money.

Are you a steady saver, putting away small amounts over the long run? Or do you aggressively tackle the savings with large contributions over a shorter period? As long as you are saving money toward a realistic, well-defined goal, (home, vacation, car, education) you can achieve it. Statistics say 28% of Australians are the hard and fast saver, while 37% are the slow and steady kind. Many Australians do a mix of the two, slow and steady for a while, then fast and hard for a while.

4) Whatever your financial goals are, engage!

If you don’t have a savings plan yet, get one. 40% of Australians have no savings plan at all. Not financially savvy, but the good news is that you can create and start a savings plan in an hour. Clear the deck first though. Don’t shoot your savings plan in the foot by carrying excessive debt into the picture. If you need to put the house in order before starting your savings plan contact Credit24 to discuss about a personal loan to help you get started.